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A Note from our Chairman

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Friday, 24 May 2019

Qudos Bank has today issued a media release concerning a judgment made by the Federal Court in a case in which we are a party and I would like to ensure our Members understand Qudos’ position.

First, some background. In November 2018, Qudos Bank commenced preliminary discovery proceedings against technology provider Infosys. Our proceedings were based on concerns about copyright infringement, breach of contract and misuse of confidential information.

Following Qudos Bank’s Federal Court application, Infosys produced some documents and computer code, but resisted producing other documents we believe are important in us making a decision on whether to commence further legal action against Infosys.

Earlier this week, the Federal Court found that Qudos Bank had reasonable grounds to believe that its rights had been violated and ordered Infosys to provide the additional documentation. The Board and Management of Qudos Bank view this matter very seriously, and are committed to protecting Qudos Bank’s intellectual property against any potential misuse.

We remain committed to introducing banking solutions to meet your needs now and in the future. In July 2018 we delivered a new mobile and tablet banking app that continues to evolve. We’ve introduced the ability for customers to reset their Online Banking password, increased self-serve transfer limits and introduced additional fraud prevention and security monitoring tools.

2019 will see the introduction of Mobile payments including both Apple and Google Pay services and implementation of the New Payments Platform encompassing PayID registration and the instant payment service Osko.

We continue to work to provide our customers with proven banking solutions to make banking easy, and to ensure that Qudos Bank fulfils the banking expectations and aspirations of our Members.

On behalf of the Board, our management team and employees I’d like to thank you for your loyalty as we work to deliver our vision for the future.

For further information please refer to the issued media release, court judgment and some FAQs to provide additional information below:

FAQs

  What is the company’s reaction to the Federal Court order?

Qudos Bank welcomes the Federal Court’s order that Infosys should supply information to allow Qudos to determine the nature and extent of any infringement of Qudos Bank’s rights.

  Did Qudos Bank terminate the contract with Infosys in October 2018 because of the potential infringement of its rights?

As noted in paragraph 22 of the judgment, the allegations of breach of contract, infringement of copyright and breach of confidence the subject of the application are one aspect of our dispute with Infosys and were one of the bases for the termination of the contract. There were other grounds for the termination arising from Infosys’ performance of its work on the project.

  The judgment refers to documents produced by Infosys in January/February 2019. Why did Qudos ask for more documents to be produced?

The documents Infosys produced did not allow Qudos to determine whether and to what extent Infosys had misused Qudos’ materials, and that is why we requested the court order further production. Those orders were granted.

  What was the value of the contract with Infosys?

If you refer to our 2017/2108 annual report (available on our website), you will see that last year we made a provision in our accounts for $21.8 million relating to this project.

  Why did Qudos Bank decide to invest in legal proceedings?

As a customer owned bank, we are always conscious of acting in the best interests of our Members. This was not a decision that we made lightly, and why we decided to make an application for preliminary discovery before we commit the Bank to further legal proceedings.

  Will Qudos Bank be undertaking further legal action?

Once we have reviewed the information that the Federal Court has ordered Infosys to provide, we will consider next steps. Qudos remains committed to protecting its intellectual property and confidential information.

 

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